Major Changes to Funding Rules for Migrants in England and Wales

Navigating the 2025/26 Skills Funding Changes: iungo commits 100 bursaries to support Displaced Participants

The landscape of adult education funding in England and Wales has undergone a significant structural shift in the 2025/26 Academic Year. Surprisingly, and much to our disappointment, the changes in both countries have not been well publicised or clearly communicated to providers which has caused confusion and frustration for applicants and continuing participants.

In the latest publication of the Adult skills fund: funding and performance management rules 2025 to 2026, the Department for Education (DfE) has implemented new residency criteria that alter who can – and cannot – access taxpayer-funded training.

In Wales, the new Commission for Teritary and Higher Education, known as Medr, has published a Guide to the post-16 planning and funding framework, which has also evolved residency criteria affecting migrants living in Wales.

While these changes were designed to simplify the system, the subtle differences create an inherent funding gap between regions. Furthermore, specific groups of migrants who previously qualified for support, may not longer qualify in one or both regions under the new funding rules.

At iungo Solutions, we are stepping in to provide a financial bridge for those affected.

Changes in England

Under the previous 2024/25 framework, eligibility was largely determined by a 3-year rule. If a non-UK national had lived in the country for three years and held a valid visa, they were generally eligible for funding.

The 2025/26 rules have moved toward a status-based system. While this allows those with settled status (like ILR) to access funding from Day 1, it introduces strict exclusions for those on temporary or sponsored routes:

Category	2024/25 Eligibility	2025/26 Eligibility	Conditions / Notes
Sponsored Worker Visas (e.g., Skilled Worker, Health & Care)	Eligible if the individual reached 3 years of residency.	Ineligible	Explicitly excluded regardless of the length of time resident in the UK.
Global Business Mobility Routes (e.g., Senior/Specialist Worker)	Eligible if the individual reached 3 years of residency.	Ineligible	Classified as sponsored work routes and therefore excluded from funding.
Student Visas	Generally Ineligible	Ineligible	Explicitly excluded from funding; applies to both primary visa holders and their dependents.
Graduate Route	Generally Ineligible	Ineligible	Generally excluded as a temporary bridge visa; funding is reserved for those with a “settled” intent.
Dependant Visas	Conditional – Eligible if 3 year criteria met, exclusing dependancy on Student Visa	Conditional	Ineligible if the primary visa holder is on a Student or Sponsored Work visa. May be eligible if the spouse/partner has settled status.
Visitor Visas	Ineligible	Ineligible	Individuals on standard visitor visas have no residency basis for funding.
Refugees	Eligible	Eligible	Eligible for full funding from Day 1 (the date status is granted).
Asylum Seekers	Conditional	Conditional	Eligible if they have been in the UK for 6 months or longer with a pending claim, or if receiving specific local authority support.
Humanitarian Routes (e.g., Ukraine schemes, BN(O))	Conditional (often required 3 years or specific grant).	Eligible	Eligible from Day 1 of arrival or grant of status under the simplified residency rules.
Indefinite Leave to Remain (ILR)	Eligible	Eligible	Eligible from Day 1 of starting a course if they are ordinarily resident in the UK.

Changes in Wales

Funding arrangements in Wales were less well developed than England until the introduction of Medr. In 2023, iungo worked closely with the FE sector to agree a set of immigration-related eligibility rules for the Personal Learning Account (PLA) programme. These were in force until the publication of the Guide to the post-16 planning and funding framework 2025/26.

The 2025/26 rules prioritise those with Settled Status and at least three years of residency.

Category	2024/25 Eligibility	2025/26 Eligibility	Conditions / Notes
Sponsored Worker Visas (e.g., Skilled Worker, Health & Care)	Eligible	Ineligible	Does not constitute Settled Status
Global Business Mobility Routes (e.g., Senior/Specialist Worker)	Eligible	Ineligible	Does not constitute Settled Status
Student Visas	Ineligible	Ineligible	Explicitly excluded
Graduate Route	Eligible	Ineligible	Time-limited leave; does not constitute Settled Status.
Dependant Visas	Eligible	Conditional	Eligible if the spouse has Settled Status.
Visitor Visas	Ineligible	Ineligible	Individuals on standard visitor visas have no residency basis for funding.
Refugees	Eligible	Eligible	Eligible for full funding from Day 1 (the date status is granted).
Asylum Seekers	Eligible unless they have a “no study” bail condition on their Bail 201 letter OR they are an appeal rights exhausted (ARE) asylum seeker	Conditional	Eligible if receiving support under the Immigration and Asylum Act 1999 or Children Act 1989.
Humanitarian Routes (e.g., Ukraine schemes, BN(O))	Not specifically covered	Eligible	Eligible from Day 1 (includes HP, DL, and those under Ukraine/Section L schemes).
Pre-Settled Status	Eligible	Conditional	People granted pre-settled status and ordinarily resident in the UK for 3 years or pre-settled following our exit from EU.
Indefinite Leave to Remain (ILR)	Eligible	Eligible	Provided ILR was granted before the course start date.

The Impact on Integration

The removal of funding for these groups presents a challenge for workplace progression and local integration. Many individuals on these visas serve in essential sectors but may require English for Speakers of Other Languages (ESOL) or digital skills to move into higher-skilled roles. The new directions in both England and Wales shifts the financial burden of training onto the individual or their employer.

Our Response: 50% Bursary for Migrants Affected

We believe that maintaining a skilled and integrated workforce is vital for the economy. To mitigate the impact of these policy changes, iungo is launching is ringfencing a fund worth £75,000 to support 100 learners who have lost their eligibility.

Bursaries will cover 50% of the cost of course fees for participants who meet the following criteria:

1. Status Change: You hold a visa type (such as a Skilled Worker, or dependent visa) that is now excluded under the 2025/26 funding rules in the region in which you are resident.
2. Historical Eligibility: You would have qualified for funding under the previous 2024/25 rules (typically by having lived in the UK for at least 3 years).

This bursary is available to fee-paying individuals only and will be awarded subject to application and evidence. An individual may only receive one bursary.

How to Access Support

Our goal is to ensure that the transition to the new funding model does not result in a skills cliff-edge for migrant workers and their families.

• Evidence: To claim the discount, you will need to provide proof of your current visa status and evidence of UK residency dating back to at least 2022.
• Consultation: Our Customer Onboarding Team is available to help you navigate these rule changes and confirm your eligibility for our private subsidy.

Whilst we cannot control government decisions, we remain committed to supporting the wider community of participants who contribute to our society every day.

Contact us today to discuss your study options and secure your 50% bursary and continue your learning journey.